Jack Prince, Business Development Manager at Power Systems Research, is scheduled to be a Featured Speaker at the 2026 Suppliers Partnership for the Environment Partnership Innovation Summit. The session will be held July 28-29, 2026, at Novi, MI

He will be joining a panel discussion alongside Ricardo to share perspectives on the market trends shaping industrial equipment, commercial vehicles, and power generation.

Drawing from Power Systems Research’s global forecasting and market intelligence, Jack’s portion of the discussion will focus on where growth is occurring, where companies are investing, and how a reliable forecast can help organizations make better strategic decisions.

The session will bring together multiple perspectives on the opportunities and challenges facing our industry. PSR

#Innovation #MarketIntelligence #IndustrialMarkets #PowerGeneration #Electrification #EnergyTransition #IndustrialEquipment

IN THIS ISSUE

ALTERNATIVE POWER REPORT

• New Battery Could Lead To Big Leaps in Performance
• Air Battery Makes Larger Electric Aircraft Possible
• Batteries Can Reshape Shipping Fuels
• Fossil Fuels Are 40% of Freight Shipping Tonnage
• Paving the Way for Lithium-Nitrogen Batteries

TRUCK PRODUCTION REPORT: Q2 2026 PSR Truck Production Index Climbs 11.3%
DATAPOINT REPORT: 2026 North American Hydroseeder Production

SOUTH AMERICA/BRAZIL REPORT:

• Bus Chassis Production Shows Gains Despite Likely Downturn
• Chinese Vehicle Imports Reduce Brazil Exports to Argentina
• Scania Brazil Plant Prepared for Electric Truck Production
• Sany Announces Production Plant in Campinas, Brazil

JAPAN REPORT: IHI Tests Ammonia-Fueled Land-based Engine
SOUTH KOREA REPORT: Government Links Semiconductor, AI Investments
THAILAND REPORT: MHEV Production Investment Approved
CHINA REPORT: XCMG Group, ZF Establish Joint Venture for Ag Macinery
INDIA REPORT: India-UK CETA: A Strategic Opportunity for Auto Industry
PSR REPORT: PSR Provides $2,000 STEM Scholarship

The company affirms its intention to progressively increase local content, develop Brazilian suppliers, reduce logistics costs, and strengthen parts and aftersales support. The exact municipality, investment value, production capacity, and number of jobs have not been officially disclosed.

Source: Click Petróleo e Gás

PSR Analysis. Sany has historically operated in Brazil as an equipment importer and previously reversed plans for local production in Jacareí-SP. Starting CKD assembly at the former Mercedes Benz facility does not fundamentally change this strategy, although it may generate tax and cost benefits depending on the pace and scope of nationalization. Expectations for local sourcing should remain cautious, but production volumes, locally assembled models, and nationalized components should be closely monitored to identify supply opportunities accurately. PSR

Fabio Ferraresi is Director, Business Development, South America, for Power Systems Research

Previously it was thought that oxygen in the battery was “passive”. But the study found that while phosphates showed little oxygen participation, the layered oxides (in the cathodes) showed “significant” electron extraction from oxygen

Source: MSN: Read The Article

PSR Analysis: Our current battery technology is limited by our understanding of the underlying physics of how and why batteries fail over time. This research opens new avenues to explore and will help design batteries with much longer lifetimes.   PSR

Full sized airplanes represent a significant challenge, which requires a completely new generation of lighter, higher performing (increased energy density) batteries. And, the US startup Air Energy may have a solution: solid State Lithium-Air batteries.

The idea is to use oxygen as a key ingredient in a rechargeable lithium-based battery, thereby saving considerable weight while potentially boosting energy density far beyond the capacity of ordinary lithium-ion technology

The US Energy Department’s Argonne National Laboratory discovered that the cathode-centered assumption behind all the previous work, was mistaken. They observed lithium hydroxide forming on the anode during operation, causing the battery to degrade, and the research work kicked off.

Source: Clean Technica: Read The Article

PSR Analysis: Obviously we are not there yet, and the batteries are not suitable for the larger aircraft, but if the latest research can be upscaled into production, then light aircraft may just have found their zero-emission option.   PSR

Guy

The paper argues that not every ship needs to become battery-electric. This goes against the standard anti-eco argument, that states that marine transport is not suitable for electrification. Inland vessels, ferries, coastal ships, offshore support vessels, service craft, port craft and many short-sea routes operate in regular patterns that are much friendlier to electrification.

The report finds that, by 2030, roughly 30% of maritime energy consumption and nearly 20% of maritime greenhouse gas emissions are technically electrifiable.

Source: Clean Technica: Read The Article

PSR Analysis: The report / paper infers that by electrifying smaller vessels, maritime emissions can be significantly reduced. Meanwhile, when the industry focusses on larger, deep-sea vessels and looks towards alternative fuels such as ammonia or hydrogen, it may be missing a relatively easy win. And it’s something that has already started to happen with vessels such as ferries.   PSR

Guy

Leaving aside the issue of Inland sea vessels, ferries, coastal ships, offshore support vessels, service craft, port craft and whether they can or should be electrified, one of the issues that is not being discussed (until now that is), is what happens to the marine market in terms of cargo capacity and cargo hauled, when fossil fuels are replaced.

Fossil fuels are roughly 40% of maritime tonnage, but they represent about half of maritime freight energy because coal, oil, and gas are mostly long-haul bulk trades.

Source: Clean Technica: Read The Article

PSR Analysis: Fossil fuel cargos travel long distances in very large tonnages, so any decline removes more than a proportional share of cargo mass. It removes a larger share of the ocean work and the fuel burned to do that work. This means that elimination of fossil fuels from the high seas may have a greater effect than simply a reduction in the fuels burnt by shipping.   PSR

Guy Youngs

They go on to suggest that improved electrolytes, catalysts, separators, and cell designs, alongside standardized testing and flow-type architectures, are needed.

Source: PV Magazine: Read The Article

PSR Analysis: These batteries were first demonstrated nearly a decade ago, but development of the technology has been limited. One reason why these batteries may be important in the future is that in the battery, lithium reacts with nitrogen gas to form lithium nitride (Li₃N) during battery discharge and, ideally, regenerates lithium and nitrogen during charging. If researchers can resolve these issues, this battery has great potential.   PSR

The PSR-TPI measures truck production globally and across six regions: North America, China, Europe, South America, Japan & Korea and Emerging Markets.

This data comes from OE Link, the proprietary database maintained by Power Systems Research.

All Regions. MHCV demand will vary by region in 2026.  North America and Europe have seen orders increase through much of the first half of the year and vehicle demand is expected to improve somewhat over last year. China is expected to see a single digit decline in production much of the decline comes on the heels of very high levels of production in 2025.

Global Index. Overall, global production is expected to decline slightly in 2026 over last year.  Ongoing tariffs along with the conflict in the Middle East and the shipping disruption in the Strait of Hormuz are currently putting pressure on truck demand.  However, at the time of this writing fuel prices have been declining as more vessels are able to pass through the Strait.

North America. Medium and heavy truck production in North America is expected to increase by 9.5% this year compared with low 2025 production. While class 8 truck production is expected to increase by 13.5% this year as order rates for class 8 trucks have improved strongly throughout much of the year.  Improvement in freight rates and freight demand along with tightening truck capacity and some level of truck pre-buy ahead of the 2027 GHG emission regulations is expected to drive increased truck production this year.  While truck sales have been down for much of this year, production levels are expected to be strong in the second half of the year.  Oil prices have been recently declining which will also help drive truck demand in the third and fourth quarters of 2026.  PSR

By Jim Downey, Vice President-Global Data Products
Chris Fisher, Senior Commercial Vehicle Analyst

Brazilian bus chassis production reached 16,200 units in the first half of 2026, up 3.2% year-over-year, but June output fell 20.8% from May and 15.1% from June 2025, signaling a possible reversal in the production curve. Registrations totaled 10,200 units in the first half, down 11.6% year-over-year, despite a June rebound supported by subsidized credit from Move Brasil 2.

Anfavea revised its 2026 outlook downward, projecting 22,500 registrations, 25,000 chassis produced, and 4,400 exports, reflecting weaker demand, high interest rates, public procurement delays, and the electoral calendar.

Source: AutoData     Read The Article

PSR Analysis. Anfavea’s revised projections are now converging with the scenario anticipated by PSR in Q4 2025, based on high interest rates and a decline in the volumes of public funding programs. The segment’s production level is dependent on subsidized credit and government procurement, while delays in Caminho da Escola reduced volumes for the year. Move Brasil 2 supports short-term demand, but the structural outlook remains constrained by financing conditions, public budget timing, and weaker exports.  PSR

Fabio Ferraresi is Director, Business Development, South America, for Power Systems Research